All Forum Posts by: Grant R.

@Brandon Mattingly No problem, sir!

Regarding vacancy, you would start with your lease term (1 year), then add your estimated turnover time (repairs/cleaning, interviewing new tenants). Ideally, this is 2-3 weeks, but "ideal" in this business often feels mythical :) For reference, 1BR apartment complex owners use 5% vac rate in this scenario.

You should never assume your first tenant or anyone thereafter will stay longer than their original commitment. So count on an annual turnover rate. My first property was a single family, and my first tenant broke their lease; left after 7 months. When the whole dream of SF is to find someone to stay for 10 years, this didn't feel great. This is where the vacancy rates helped protect me. Try not to make margins so thin that they don't reflect the real world. It could be 4 tenants before you find a solid long term renter. And that's ok.

Just a couple reasons why I recommend using 8% vac For SF in our region. That gives you an extra 10 days above the small apartment vac rate to handle any extra hurdles with a larger property and a smaller tenant pool. Hope that helps!

@Brandon Mattingly congrats, sir! I'm a fellow Northern Indiana investor, mostly in the Warsaw to Fort Wayne corridor.

Your analysis looks pretty good as long as your income estimates are on for the city. I would recommend bumping up vacancy to around 8% for the area. I've found that it takes longer to turn over SF between renters because either 1) there's just more stuff (more swinging doors, garages, bathrooms, etc) or 2) there are fewer qualified applicants at SF price point.

Otherwise really great work! This deal should still work out well, and you were right to take action. Hit me up anytime.

All the best,

-Grant

@Adrien S.

Hey Adrien! I've found such deals in at least 3 cities recently. South Bend is an easier one. Again, a lot of variables, but picking up a lot of units in this range is possible even in B neighborhoods. Shoot me a message if interested in more. I love to collaborate.

@Jonathan Klemm  Good morning!  A lot of variables in that question.  On-market/off-market, many different asset classes, etc.  But for the specific opportunities I've worked on in the past 6 months, they range from $35k to $50k per unit.

Like everywhere in the U.S., these are few and far between; I feel blessed to be working on these with my partners! 

@Frankie B.

Educate yourself really well on all the benefits for a seller if they finance any part of the deal (Google/BP/Library/Courses/YouTube). You may have to educate a seller, and show them its a win-win, so be ready.

Then just verbally ask a seller if they're open to it, and walk them through what you learned. That's an off-market example. Many are open once they understand it.

For on-market, you probably can't talk directly to the sellers, only their agent. In this case, try submitting two offers (options). For example, a conventional bank financed option, and an option with partial bank and partial seller financing. Offer a higher price on whichever one you would prefer them to choose.

There are other methods too, these are just examples. Hope that helps :)

@Jessie Kristie

@Rob Nappi

@Audrey L.

Hey everyone. Thanks for connecting! FYI, in addition to raising capital for multifamily opportunities, I offer boots on the ground services for OOS investors like video walk-throughs, meeting attendance, deal analysis, etc. Welcome to the group!

@Frankie B.

Yes, most often it's 25%. Keep in mind that some of that 25% down at closing can come from sources other than you. The key is more that the bank isn't financing any more than 75%.

For example, you could bring 15% in personal cash, and have the seller finance 10%, for a total of 25% that the bank is not providing. Every bank is different, but with commercial, all these structures are possible somewhere.

@Aleksandar P.

Aleksandar, good afternoon! I'm an investor in your area. Currently working on a couple 20-unit deals. Shoot me a message with your email, and we can chat more.

@Eudith Vacio and Tim, would love to connect with you as well. I'll reach out soon.

Happy weekend!

@Keith Resnover

Here I am - the only other investor in the state. It's you and me. Let's do this.

;)

I'm operating mostly in Northern Indiana, along the Warsaw to Fort Wayne corridor, with plans to expand. Message me anytime with questions, opportunities, or free Pacers tickets. All the best,

-G

Good afternoon BP family! Can anyone walk me through the details of separating utilities at a MF rental in the Fort Wayne, IN area?

If you've done a house-to-MF conversion or simply upgraded an existing rental property with separate utilities and new meters, I'd love to hear about your experience.

Many thanks in advance!